Cuba Sostenible

New Agreement Favors Investment Conditions in Cuba for European Entrepreneurs

Cuba Strategies Inc12 March 2016

Christian Leffler, Deputy Secretary General for Economic and Global Affairs of the European External Action Service, and the Deputy Minister of Foreign Affairs of Cuba, Abelardo Moreno, signed an "Agreement on Political Dialogue and Cooperation" between Cuba and the European Union yesterday. This document was the result of about two years of work between the two delegations to achieve a new relationship between their governments.

According to the EU, the agreement “mainly aims to create a more predictable, transparent environment for economic operators, and to increase the capacity of economic operators to produce and trade, but does not establish a free trade area between the parties, nor does it cover investment protection”.

Also, it “will contribute to enhancing EU-Cuba relations, accompanying the process of "updating" the Cuban economy and society, promoting dialogue and cooperation to foster sustainable development, democracy and human rights, and finding common solutions to global challenges”.

The European Union remains the largest trading partner of the island (after Venezuela) and countries such as Spain have their own BIT (Bilateral Investment Treaty) with the Caribbean nation. This new agreement puts an end to the "common position" that marked with severe limitations and for years Cuba's relationship with the European Union.